Ripple is not only the name for an XRP digital currency, it’s also a futuristic system for users to make payments, and send or receive virtual currency on a digital network.
If you’re searching for more information on this crypto, you’ll need to know how it works and if it’s a worthy rival to the popular Bitcoin in the world of digital currency.
As with other crypto coins, Ripple coin is a virtual currency that was established as a medium of exchange to provide a level of anonymity. Cryptography is used to secure transactions and control new units of the currency created.
Here’s how this virtual currency can be purchased and what you really need to know about Ripple coin price today, investment opportunities, and its future in blockchain technology before you invest in this digital coin. Let's get right into this review.
Ripple currency is a type of cryptocurrency that’s growing in popularity. Released in 2012, the original company was founded in 2004.
OpenCoin is the company behind the digital coin which was co-founded by Chris Larsen, the co-creator of E-Loan, and Jed McCaleb who founded MtGox.
The aim of this virtual currency is to allow its users to step away from regular financial institutions, which offer credit cards with transaction fees and restrictions - like delays for processing.
This digital coin also shoots to build on the approach set by Bitcoin, which allows for safe and seamless transfers of money without the requirement of a third party.
Ripple’s network is also designed to connect various payment systems together to provide easier transactions.
Its digital coin has already been adopted by many financial institutions around the world as the company has a positive cash flow and its XRP is released into the market periodically. The main features of this cryptocurrency include:
Here’s a closer look at how Ripple XRP currency works right now and in the future.
If you’re interested in investing in this type of coin, you’ll want to know how it works exactly. As already stated, Ripple cryptocurrency is not just a digital coin but it’s also a network.
The coin is also known by its given name, XRP. The company focuses on working with banks to provide a cost-effective method of sending real-time payments internationally.
Here’s an example. If you wanted to send money from England to the US, you can exchange the British pound (GBP) for XRP = the currency of Ripple coins.
You can then send the XRP to your recipient using distributed order books integrated into the network. The recipient will require an online wallet or US bank.
Once the payment is received, they can then exchange the XRP to US dollars or any other coin across the globe. As the digital currency transactions happen instantly, it can save users substantial time and money on their exchanges.
When converting currencies, the network uses a pathfinding algorithm to search for currency swaps that give users the lowest price on their conversions. As anyone can be a market maker, competition drives fees to extremely low levels.
Ripple currency works with banks and its aim is to develop networks to benefit these financial institutions. As of October 2017, they licensed their blockchain technology to over 100 banks.
Anyone using this virtual coin uses the company’s technology and open-source payment protocol. The shared-ledger allows any user to take advantage of the blockchain technology, so anyone can create a wallet or gateway.
Gateways are independent businesses that hold users’ money in various currencies in exchange for allowing them to send payments via the network. Users can then withdraw their money from these gateways.
The competitive nature of the network allows users to benefit from low fees, which is very attractive. Here’s a closer review at some of the features of XRP coins.
Almost all types of digital coins use blockchain technology for transactions. A blockchain is a decentralized and digitized public ledger of transactions.
New transactions are recorded and added in chronological order so participants in the market can keep track of transactions without any central recordkeeping.
This virtual coin uses its own blockchain technology on its own network.
Encryption is the process of converting data to a code that can only be decoded by a decryption key.
Encryption prevents unauthorized access and boosts security during digital transactions. The Ripple network uses the same kind of encryption as the Elliptical Curve Digital Signature Algorithm to offer signing, verification, encryption and decryption.
With this form of encryption, users have a secret number which is randomly generated. The numbers are known as private keys, which correspond with funds on the public ledger and ensures only someone with the number can spend the funds.
Now that we’ve gone through some basic information about this cryptocurrency, here’s how you store it.
Storing Ripple currency is slightly different than other digital currencies but can be just as secure. To safely store your money, you can hold it in a vault like Gatehub.
You will then receive an IOU for the amount you store. Alternatively, you could store your digital cash in a paper wallet and print out your keys. Some people may put these keys in various places and use them when they need access to their wallet.
If you prefer a different method, you can use something that supports several blockchain technologies like the Ledger Nano, which stores it on hardware. You then use the hardware as a USB device to store your coins.
Just remember where you put your hardware as you’ll need it to access your money. Or for yet another method, you can leave them on the exchange in your brokerage account.
An important question any time you’re dealing with a digital coin is whether or not you can mine it. Here’s some more information about mining when it comes to this particular digital currency.
When it comes to mining this virtual currency, the short answer is you can’t mine it. There simply are no miners.
While mining is a core aspect of other cryptocurrencies, the transactions for this digital coin happen via a centralized blockchain for added reliability.
Because miners have an incentive to process network transactions with the currency, Ripple cryptocurrency has deemed this unsuitable. This is because decentralization would slow it down, which is a problem with Bitcoin and something the network wants to avoid.
The speed and reliability are just two reasons why the XRP coin and network are popular with users. If you’re ready to get some for yourself, here’s where you can purchase some of this virtual currency.
Ripple XRP is available to buy on various exchanges like Gatehub and Bitstamp. Once you’ve found the exchange you want to buy on, it’s pretty straightforward from here.
Create an account on the exchange of your choice, enter some personal information and use the website’s navigation to make your purchase.
Ripple’s website features some detailed information with step-by-step instructions if you need more direction. You can purchase the currency immediately.
There are many reasons people want to buy cryptocurrencies and this particular virtual coin may seem like a good idea. But here’s what you need to know before you buy.
Ripple has significantly grown in popularity during 2017, rising from under $0.01 to its current value of over $1. In December 2017 alone, it grew by 64 percent and is currently the third largest cryptocurrency in the world behind Bitcoin and Ethereum.
What makes is so popular may be down to its partnership with major banking corporations, including American Express. In many ways, Ripple complements other cryptocurrencies like Bitcoin, rather than competing with them.
Its network allows for the exchange of any currency, so even Bitcoin users can transfer their digital cash via their network.
During the transfer of payments, Ripple coins doesn’t take a transaction fee. Instead, it takes a very minimal amount of XRP (1/1000th of a cent) from every transaction.
But this amount is then destroyed in order to prevent the network from overcrowding with users who try to process thousands of transactions at once.
If you’re looking to invest in this digital coin, there are rumors you may soon be able to purchase it via the #1 app on the Apple Store – Coinbase, which is bringing in 100,000 new users every day.
With its growing popularity for secure and anonymous transactions, here’s a quick review at whether or not you should invest.
Ripple is an interesting choice for many users and have features that make it attractive. As it is a payment network with its own digital currency, many users like the ease of use, seamless transactions and super speedy payments.
Another benefit for those interested in investing in this cryptocurrency is many banks have adopted it – making it the first digital coin to be used by financial institutions.
Banks are likely to view this virtual cash as a long-term investment, so you can rest-assured of its stability in the market. It’s also open to all users – anyone can open a wallet to buy currency, making it highly accessible.
For those new to cryptocurrency, Ripple is currently an affordable price but is likely to rise as its popularity grows. Because the currency cannot be mined, investors can be certain of a reliable network and developers have controlled distribution so the market doesn’t become saturated.
As this virtual money picks up momentum, you’re likely to hear a lot more about this cryptocurrency. Investing in XRP may be a worthwhile venture, especially as its value goes up.